MarketAxess stock price target raised to $217 from $214 at Jefferies

Published 14/07/2025, 11:58
MarketAxess stock price target raised to $217 from $214 at Jefferies

Investing.com - Jefferies has raised its price target on MarketAxess (NASDAQ:MKTX) to $217.00 from $214.00 while maintaining a Hold rating on the stock. According to InvestingPro data, the company currently trades at $216.05, with a relatively high P/E multiple of 37.5x, suggesting premium valuation levels.

The price target adjustment follows stronger-than-expected trading volumes across all asset classes for the second quarter of 2025. Jefferies revised its Q2 earnings per share estimate upward to $1.95 from $1.83, citing total average daily volume (ADV) of $48.5 billion, which was 28% higher than previously estimated. The company has demonstrated solid financial performance, with revenue growing 7.3% over the last twelve months to $815 million, as reported by InvestingPro.

High-grade credit trading volumes exceeded prior estimates by 10%, while high-yield credit was 13% higher. Eurobonds and emerging markets trading also outperformed expectations, showing increases of 16% and 10% respectively. The growth in emerging markets and Eurobond trading was partially attributed to new targeted block trading initiatives implemented this year.

Despite the volume increases, fee per million (FPM) in credit trading declined by $1 quarter-over-quarter to $138, primarily due to protocol mix. In rates trading, while ADV was 39% higher than previous estimates, FPM of $3.90 was 7% below prior estimates and down $0.30 from the previous quarter.

MarketAxess completed its acquisition of 90% of the RFQ-hub platform in May, which will partially impact second-quarter results. Jefferies now forecasts a Q2 operating margin of 42.7%, up from its previous estimate of 42.0%, with quarterly expenses projected at $126 million compared to $124 million previously estimated. With earnings scheduled for July 16, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed Research Report, which includes expert analysis of the company’s strong financial health metrics and future growth potential.

In other recent news, MarketAxess Holdings Inc. reported record trading volumes for the second quarter of 2025, with total trading average daily volume reaching $49.0 billion, marking a 43% increase from the previous year. The company achieved over $1 trillion in total credit quarterly trading volume and a record $2 trillion in total rates volume. Additionally, MarketAxess announced the appointment of Dean Berry as Group Chief Operating Officer and CEO for the EMEA and APAC regions, aiming to enhance global operations and innovation in fixed-income markets. UBS reiterated its Buy rating on MarketAxess, maintaining a $295 price target, despite adjusting its earnings estimates due to lower credit transaction fees. Citi also reiterated a Buy rating with a $265 price target, highlighting strong trading volumes and market share trends. Raymond (NSE:RYMD) James maintained a Market Perform rating, noting the need for sustained market share momentum. The company saw significant growth in portfolio trading and block trading, with emerging markets activity exceeding expectations. These developments underscore MarketAxess’s strategic initiatives and ongoing performance in the electronic trading sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.